Question：P bought 80% of S on 1 July 20X3. S's profit after tax for the year ended 31 December 20X3 is $80,000 and its retained profit is $20,000. Profits accrued evenly over the year.
　　In the consolidated income statement for the year what will be the non-controlling interest figure?
　　A. $8,000.
　　B. $42,000.
　　C. $48,000.
　　D. $2,000.
　　The correct answer is:$8,000.
　　The non-controlling interest is 20% of the subsidiary's profit after tax that has been included in the consolidated income statement. As P bought S half way through the year it will only have consolidated $40,000 of S's profit.